Using PayPal to Pay for AirAsia (and Similar) Flights

saxlady on 15/03/2017 - 12:17

There have been a number of great flights come up recently (thanks for those who've posted them) where if you pay via CC there are additional fees, but if by POLI or Paypal not so much.

According to the citibank Signature cc terms, if you pay for the tickets with the card you will receive complimentary travel insurance.

How about if you pay via PayPal, but choose the CC in question to make the payment? Would you be entitled to the insurance or not? Would they see that as paying for the tickets or simply paying the PayPal bill?

I'm loathe to call Citibank and ask as I'll get switched from person to person and in the end I'll just get someone who will read me the terms and conditions.
(This is what happened when I called them to clarify another issue)

Any ideas? Obviously you wouldn't want to just assume, have something go wrong and find you're not covered.

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Comments

  • dazweeja on 15/03/2017 - 12:27

    It is my understanding that credit card companies can only see who charged your card, not what you bought. So all Citibank will see is a charge from PayPal, not AirAsia or some other airline, and no mention of a flight. My inclination is that it would be risky - they may allow you to provide further proof of the transaction to demonstrate that it qualifies, eg. PayPal invoice, but they may not. My guess is that in normal situations they would determine eligibility based on which company charged your card.

  • jackofspade on 15/03/2017 - 12:43

    Yes, you qualified for the TI. Many people have confirmed with Citibank.
    The strange thing is when you paid with paypal, the transaction description on the CC statement is 'Airasia X [booking ref]' instead of the usual 'PAYPAL *MERCHANT'.

  • Peck on 15/03/2017 - 22:35

    I confirmed it with Citibank ages ago. And reported it on Ozbargain. You can pay one way tickets (outwards journey), AND you can pay with paypal. And so I pay AirAsia with Paypal from Sydney to my destination with citibank signature card, and separately I book the return portion with AirAsia with citibank plus (no transaction fees nor foreign currency fees). This way a make a good savings. But I have never had to claim, and so, I guess, 'the proof of the pudding is in the eating'.

    • saxlady on 16/03/2017 - 10:08

      Thanks for the replies.

      peck can you post a link to the thread where you reported it?

      Thanks

      • Peck on 16/03/2017 - 10:18

        It would just be a repeat of what I said above.I rang Citibank, and they confirmed by phone that it can be a one way (outwards) ticket, and that payment with citibank signature thru paypal is fine. It shows up on your statement as, for example 'AIRASIA X JRHFIG PAYPAL COM AU'. JRHFIG being the AirAsia booking number. And logically it is no skin off their teeth if you go via paypal, as they still get their commission. Their insurance book also confirms about outwards flight booking ( but duration of cover is different if you have a return booking) I dont have the insurance book with me at this mo.

        • saxlady on 16/03/2017 - 10:48

          Ok thanks for that.

    • bluesky on 21/03/2017 - 22:03

      When you pay the outward journey for AirAsia using Citibank Credit Card, is AirAsia, in the payment for the outbound leg, considered an overseas merchant, hence attracting the International Transaction fee?

      The merchants considered foreign as compiled/discussed in this thread included Scoot Airlines, Jetstar Asia, Hertz Australia, Microsoft and many more, so it seems likely AirAsia will be considered as a foreign merchant. Despite billing in AUD, they still charge the international fee (being the DCC).

      Are you using the Citibank credit card despite the fee, to obtain the travel insurance? Or is the outbound journey part billed by AirAsia in AUD, being considered a local merchant, hence free of the foreign fees?

      Would appreciate any info/feedback on this. Thanks in advance.

      • Peck on 21/03/2017 - 22:06

        Paid with Citibank Signature in $AU, through Paypal, AND I am pretty sure that there are no fees. Definitely don't pay the $10 booking fee.

        • bluesky on 21/03/2017 - 22:09

          Sorry, perhaps my question was not clear. I was not referring to the AirAsia booking fee; rather, the International Transaction fee, charged by Citibank Credit Card, when a merchant is considered foreign, despite the charge being shown in AUD. (Which is what got a lot of people rather annoyed, since there is no clear way to know ahead of time, if a merchant is considered foreign, or not.)

          If you were quoted for the flight as AUD$x, and your statement indeed shows AUD$x, then there is no International Transaction fee. Right now, I am using 28 degrees CC (via paypal for the outbound), thinking the fee applies even outbound; but if there is no fee, then your method is great, and I will use it, since it means some additional free travel insurance. Looking forward to your feedback.

        • Peck on 21/03/2017 - 23:19
          +1

          @bluesky: Yep I was referring to that as well as booking fee. Maybe someone else can give you more certainty. I book about 8 times per year ex Aust. and have not noticed such fees.

        • bluesky on 21/03/2017 - 23:21

          @Peck: That is good news, thank you :-) I will use your method for the next flight!

  • retiredfeline on 16/03/2017 - 10:22

    OP, how good is the free TI? It looks like very basic, just death cover basically. I don't think I saw medical evacuation.

    • saxlady on 16/03/2017 - 10:42

      Looks ok as far as I can see -

      Medical & hospital expenses Extensive cover for unexpected medical and hospital expenses, except bed care patient allowance (i.e. miscellaneous expenses such as phone calls & TV rental) of A$110 per day is limited to A$13,000 per person to maximum of A$16,500 in total. No cover for pre-existing medical conditions, unless prior approval given and the administrative fee paid.

      They don't say what the 'extensive cover' is, but you'd assume ok. (I know, never assume anything) Then $110 per day in extras up to a total of $13k, which seems reasonable.

      Doesn't mention evacuation - you'd probably have to contact Allianz for more details.

      The other details are here - https://www.citibank.com.au/aus/static/complimentary_insuran…

      I can't comment on them from experience - last time we went away we purchased insurance elsewhere as the cover for rental car didn't cover what was required from the place we rented from.

      • constipated on 16/03/2017 - 20:10

        I just rang Allianz today regarding pre-existing conditions. They said since they've taken from Zurich, they have not sorted out the pre-existing condition fee structure. So at present they will cover you if you're pre-existing condition falls within a list where they wouldn't charge you any extra anyway.

        But if you have a significant pre-existing condition where there would usually be an additional premium, they won't cover you at all (at present at least).

    • Peck on 16/03/2017 - 10:54

      Even if you are carrying a tiny bit of the risk yourself, I am happy to do so at the zero dollar cost of this cover.

      • retiredfeline on 16/03/2017 - 12:37

        Considering proper TI is only a small fraction of the total trip cost, I'd rather not skimp on that.

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